India's largest automaker Maruti Suzuki India put to rest all speculation about the reopening of its Manesar plan and said it does not plan to announce on Monday or Tuesday any plans to reopen its plant, reports said.
"Our position is exactly the same to what we said in the beginning, that we will decide on a date of opening when we are satisfied that safety and security of all our employees is ensured," reports said citing Maruti Chairman R.C. Bhargava.
The board of Maruti Suzuki India was expected to meet on Monday to decide on the resumption of production at the Manesar plant, reports said.
On Jul 21, the act of rioting and arson by plant workers at the automaker’s Manesar plant in Haryana claimed the life of an HR official and left scores of other employees injured. The company had announced an indefinite lockout at the plant ever since.
“We are awaiting the investigation report on Monday and after taking a stock of the entire situation including the technical assessment, we will decide what to do,” reports said earlier citing A Y Siddiqui COO, administration, IT and HR.
Reports said citing sources that the company was looking at resuming production by last week August at the plant.
However, another official said that it will take the company at least a month to resume production at full capacity of 1,900 cars a month.
Meanwhile, Bhargava said earlier, “We may announce the date of restarting operations at Manesar plant next week,” reports said.
The Manesar plant accounts for nearly 40% of Maruti's production capacity.
Maruti has been losing production of about 1,900 cars owing to the lockout. According to analyst estimates, the lockout is costing Maruti nearly Rs.900mn in lost revenues and an erosion of 10 basis points in earnings per share (EPS) each day.